Jacobs Solutions (US:J)2024-11-19 11:39Revenue Growth - Revenue for Q4 2024 grew 4.4% year-over-year to $3.0 billion, with adjusted net revenue up 4.3% year-over-year[4] - Fiscal Year 2024 revenue increased 6.0% year-over-year to $11.5 billion, with adjusted net revenue up 5.1%[4] - Revenues for the three months ended September 27, 2024, increased to $2,960.15 million, up 4.44% from $2,834.28 million in the same period last year[21] - Infrastructure & Advanced Facilities segment revenue for the three months ended September 27, 2024, reached $2,670.70 million, up 4.89% from $2,546.04 million in the same period last year[23] - Adjusted net revenue for the three months ended September 27, 2024, was $2,118.93 million, compared to $2,032.29 million in the same period last year[23] - Infrastructure & Advanced Facilities revenue increased to $21,472,000 in September 2024 from $17,526,000 in September 2023, a 22.5% growth[29] - Total revenue for Infrastructure & Advanced Facilities and PA Consulting combined was $21,850,000 in September 2024, up from $17,837,000 in September 2023, a 22.5% increase[29] Net Income and Earnings - Net income for Q4 2024 increased by 333.1% year-over-year to $309 million, with adjusted EBITDA up 12.5% to $289 million[4] - Net income for FY 2024 rose 61.6% year-over-year to $613 million, with adjusted EBITDA up 8.9% to $1,059 million[4] - Net earnings attributable to Jacobs for the three months ended September 27, 2024, rose to $325.44 million, a significant increase from $149.38 million in the same period last year[21] - Net earnings attributable to the Group for the three months ended September 27, 2024, were $338,757,000, compared to $166,996,000 in the same period in 2023, a 102.9% increase[27] - Net Earnings Attributable to Jacobs from Continuing Operations for the three months ended September 27, 2024 was $309.299 million, compared to $71.407 million for the same period in 2023[55] Earnings Per Share (EPS) - EPS for Q4 2024 rose 277.8% year-over-year to $2.38, while adjusted EPS increased 28.0% to $1.37[4] - EPS for FY 2024 increased 57.0% year-over-year to $4.79, while adjusted EPS rose 15.8% to $5.28[4] - Net earnings per diluted share for the three months ended September 27, 2024, were $2.51, compared to $1.24 in the same period last year[21] - Diluted Net Earnings from Continuing Operations Per Share for the three months ended September 27, 2024 was $2.38, compared to $0.63 for the same period in 2023[52] - Adjusted Diluted Net Earnings from Continuing Operations Per Share for the three months ended September 27, 2024 was $1.37, compared to $1.07 for the same period in 2023[52] - Basic Earnings Per Share for the three months ended September 27, 2024 was $2.52, compared to $1.25 for the same period in 2023[56] - Diluted Earnings Per Share for the three months ended September 27, 2024 was $2.51, compared to $1.24 for the same period in 2023[56] Backlog and Book-to-Bill Ratio - Backlog grew 22.5% year-over-year to $21.8 billion, with a Q4 book-to-bill ratio of 1.67x[4] Segment Performance - Segment operating profit for Infrastructure & Advanced Facilities for the three months ended September 27, 2024, was $177.86 million, up 9.74% from $162.06 million in the same period last year[23] - Total segment operating profit for the three months ended September 27, 2024, increased to $239.59 million, up 8.16% from $221.55 million in the same period last year[23] - PA Consulting segment revenue for the three months ended September 27, 2024, was $289.45 million, slightly up from $288.24 million in the same period last year[23] Cash Flow and Financial Position - Cash and cash equivalents increased to $1,144,795,000 in September 2024 from $770,853,000 in September 2023, reflecting a 48.5% growth[25] - Receivables and contract assets rose to $2,845,452,000 in September 2024 from $2,430,941,000 in September 2023, showing a 17.1% increase[25] - Net cash provided by operating activities for the three months ended September 27, 2024, was $196,532,000, down from $219,363,000 in the same period in 2023[27] - Free Cash Flow for the three months ended September 27, 2024 was $158.190 million, compared to $180.117 million for the same period in 2023[55] - Net cash provided by operating activities for the three months ended September 27, 2024 was $196.532 million, compared to $219.363 million for the same period in 2023[55] Debt and Financing - Short-term debt surged to $875,760,000 in September 2024 from $61,430,000 in September 2023, a significant 1,325.6% rise[25] - Long-term debt decreased to $1,348,594,000 in September 2024 from $2,813,471,000 in September 2023, a 52.1% reduction[25] - Net cash used for financing activities was $259,070,000 for the three months ended September 27, 2024, compared to $316,068,000 in the same period in 2023[27] Adjusted Metrics and Non-GAAP Measures - Adjusted net revenue excludes pass-through costs, with a name change in 2023 to emphasize its non-GAAP nature[33] - Adjusted earnings from continuing operations before taxes for the year ended September 27, 2024, were $900.6 million, up from $811.7 million in the previous year[46] - Adjusted net earnings attributable to Jacobs from continuing operations for the year ended September 27, 2024, were $665.1 million, compared to $580.5 million in the previous year[50] - Adjusted EBITDA is calculated by adding income tax expense, depreciation expense, and interest expense to adjusted net earnings from continuing operations[39] - The Company revised its presentation of adjusted net earnings from continuing operations and adjusted EPS starting in the first fiscal quarter of 2024[36] - Adjusted EBITDA for the three months ended September 27, 2024 was $288.942 million, compared to $256.888 million for the same period in 2023[55] Restructuring and Separation Charges - The company recorded $186.90 million in mark-to-market gains associated with its investment in Amentum stock during the three months ended September 27, 2024[23] - Restructuring and other charges for the three months ended September 27, 2024, were $43.39 million, primarily related to the Separation Transaction[23] - Pretax mark-to-market gains of $186.9 million were recorded in connection with the Separation Transaction for the year ended September 27, 2024[46] - Restructuring, integration, and separation charges for the year ended September 27, 2024, were $134.9 million, up from $80.7 million in the previous year[46] - Amortization of intangibles for the year ended September 27, 2024, was $152.7 million, compared to $147.2 million in the previous year[46] - Adjusted income tax expense from continuing operations for the year ended September 27, 2024, was $176.8 million, up from $164.3 million in the previous year[48] Future Outlook - The company expects FY 2025 adjusted net revenue to grow mid-to-high single digits over FY 2024, with adjusted EBITDA margin ranging from 13.8-14.0%[7] - Adjusted EPS for FY 2025 is projected to range from $5.80-$6.20, with reported free cash flow conversion expected to exceed 100% of net income[7] Separation Transaction - The separation of Critical Mission Solutions and Cyber & Intelligence businesses was completed on September 27, 2024, with Amentum now trading on the NYSE under the ticker AMTM[8] Retained Earnings - Retained earnings dropped to $2,366,769,000 in September 2024 from $4,542,872,000 in September 2023, a 47.9% decline[25] Interest Expense - Interest Expense from Continuing Operations for the three months ended September 27, 2024 was $35.686 million, compared to $43.640 million for the same period in 2023[53] Shares and Diluted EPS - Shares used for calculating diluted EPS attributable to common stock for the three months ended September 27, 2024 was 124.884 million, compared to 126.865 million for the same period in 2023[56] Free Cash Flow Calculation - Free cash flow is calculated as net cash provided by operating activities from continuing operations less additions to property and equipment[39]